The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, attributes the volatility in the global oil and gas industry to President Donald Trump’s inconsistent tariff policies, which have resulted in a drop in oil prices at the international market.
At an interactive session with state House correspondents in Abuja on Tuesday, he noted that tarrifs are fueling uncertainty in international oil markets, driving volatility and dampening investor confidence.
“The global oil market today is reacting sharply to the erractic tariffing policies of the new American government,” Ahmed said.
“The tariffs, aimed not only at China but also sweeping across multiple countries and regions, are unsettling the balance of demand and supply, particularly in the energy sector.
According to the NMDPRA boss, the unpredictability surrounding the US government’s economic direction is forcing investors and traders into short-term, high-risk decisions, with many oil traders now operating on a ‘daily strategy’, buying and selling within 24 hours due to fears of sudden policy swings from Washington.
“The inconsistency of the tariffs is making it almost impossible for investors to make long-term plans, as major policies are announced one day and reversed or escalated the next.
“We are seeing traders close out by the end of each day due to uncertainty about the next day’s news from the US, which is not healthy for the global market,” he said.
Ahmed also raised concerns that the Trump administration’s energy posture appears to favour lower crude oil prices, possibly below the $50-per-barrel mark, through aggressive domestic drilling and strategic manipulation of global supply lines.
“There is clearly a policy direction from the US President to push crude oil prices down,” he noted.